Citigroup sues Wachovia, Wells Fargo

Full story: The York Daily Record

Citigroup Inc. said Monday it has filed a complaint in New York Supreme Court against Wachovia, Wells Fargo and the directors of both companies seeking more than $60 billion in damages for interfering with the ...
1 - 3 of 3 Comments Last updated Oct 6, 2008

Middletown, PA

#1 Oct 6, 2008
Let's see here; which is better, a deal with the Feds involved getting $2.1 Mil or one from the private sector getting $15.1 Mil? So Citi thinks it lost $60M because it was beat out in the bidding and Govt aiding in the relative theft of Wachovia? No wonder the financial markets are in trouble, but be sure the Govt is there to help and interfere with free market economy.
Then there are the lawyers who make money by suing for more mortgages for the less qualified and for bank deals gone "bad" but that is another story.
Where does the buck stop

York, PA

#2 Oct 6, 2008
If the people who have business and mortgages with Wells Fargo and Wachovia will they have to pay for this mess. Where's this all end. 16 pages of sherriff sales and foreclosures in the YDR one day alone this week.
The Talented Mr HR

Nottingham, MD

#3 Oct 6, 2008
See this for what it is...

1) Wachovia's CEO and Board of Directors drives their company into imminent bankruptcy

2) The Fed stepping in last weekend, pleading for anyone to come and rescue Wachovia (which on Monday was going down folks - they were toast)

3) Wells Fargo walked away from a $20B deal with Wachovia

4) The Fed begging Citi to do something at the midnight hour, and Citi wants protection from the crap (no guarantee of a $700B bailout at the time), and offers 2.2B for the retched bank operations (not the good stuff, like AG Edwards.)(Oh, and last I checked,$2.2B was a lot better than $0.0B)

5) Citi floats the liquidity that Wachovia needs all week to stay alive, and negotiates with Wachovia on the finer points of their agreement through early Friday morning

6) Wachovia secretly meets with Wells Fargo, without Citi or Fed knowledge to strike a deal while under the Exclusivity Agreement

This is bunk about Wells not doing it without Gov't Assistance. They can offer $15B because they have the protection of the $700B Emergency Package now.

More importantly, the CEO, Sr Mgmt and the Board would have lost their $220M golden parachute under the Citi deal, but they get it back with the full sale to Wells Fargo. That's all that this is about now.

Citi will go to court, and they will win. Wachovia employees were betrayed by their leaders, and should sell now.

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